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Home My WebLink AboutMINUTES Advertising and Public Relations Committee 1972-08-29RECORD OF PROCEEDINGS Advertising and August 29, 1972 Committee: Attending: Also Attending: Absent: Public Relations Committee FINANCIAL REPORT: Chairman Wagner; Trustees Prosser and Dannels Trustees Prosser and Dannels Town Administrator Dale G. Hill Chairman Wagner Mr. Ron Reiland, Chamber of Commerce Manager, submitted a summer financial report which is attached to and made a part of these proceedings. 1973 ADVERTISING PROPOSAL: Mr. Reiland, Dr. James Durward, Mr. Ward Crowley and Mr. Lou Canaiy appeared before the Committee and requested the following 1973 adver- tising funds: 1. Regular advertising 2. Movie 3. National image advertising $19,500 3,500 7,000 $30,000 A detailed copy of the Chamber of Commerce presentation is attached. There being no further business, the meeting adjourned. Dale G. Hill, Town Administrator I - APPROVED SEP 11 1972 i TOWN OF ESTES PARK ,, BOARD OF TRUSTEES RJ TOWN OF ESTES PARK AREA PROMOTION EXPENDITURES SUMMER ADVERTISING - JULY 25, 1972 $7,500 ($2,500 Regional Advertising) NATURE OF PROMOTION TOTAL AMT. PAID TOTAL FUNDS FROM PAID AND EXPENSE AMT. FROM TOWN AMT. TOWN COMMITTED PAID FUNDS COMMITTED COMMITTED THIS PER. 1. LOCAL ADV. A. E.P.Trail/ Gazette B. KKEP C. Other 2. REGIONAL ADV. A. Media B. Other 3. NATIONAL ADV. A. Media B. Other 895.57 .:683.57 4,705.68 4,705.68 4. ARTWORK, PHOTO., COMPOSITION PREPARATION, ETC. 292.05 5. PUBLICATIONS A. Area Maps B. Directory C. Brochures D. Film $ 250.00 $ 250.00 $ 250.00 633.57 205.68 292.05 88.40 4,373.22 4,373.22 800.00 800.00 6. ADMINISTRATION A. Weather Service B. Public Relations C. Other 1,250.00 1,250.00 2,099<" 800.00 TOTAL 11,141.52 10,929.52 1,500.00 1,500.00 4,077.09 TOTAL PAID 6 COMMITTED A 6 C 12,641.52 TOTAL PAID & COMMITTED TOWN FUNDS B 6 D 12,429.52 BALANCE IN TOWN FUND (Not pd. or committed) Fund Consumed CONVENTION AND GROUP BUDGET $3,500 ($699 Mileage Amount) NATURE OF PROMOTION TOTAL AMT. PAID TOTAL FUNDS FROM PAID AND EXPENSE AMT. FROM TOWN AMT. TOWN COMMITTED PAID FUNDS COMMITTED COMMMITTED THIS PER. 1. LOCAL ADV. A. E. P. Trail/ Gazette B. KKEP C. Other 2. REGIONAL ADV. A. Media B. Other 3. NATIONAL ADV. A. Media B. Other 4. ARTWORK, PHOTO., COMPOSITION, PREPARATION,ETC. 139.78 139.78 5. PUBLICATIONS A. Area Maps B. Directory C. Brochures 800.00 D. Direct Mailing Sheets 13.75 13.75 E. Film 6. ADMINISTRATION A. Travel Mil. B. Travel Exp. C. Public Rel. 387.80 83.00 18.63 387.80 83.00 800.00 800.00 1,250.00 1,250.00 50.00 TOTAL 1,442.96 1,424.33 1,250.00 1,250.00 850.00 TOTAL PAID 6 COMMITTED A & C 2,692.96 TOTAL PAID & COMMITTED FROM TOWN FUNDS B 6 D 2,674.33 BALANCE IN TOWN FUND 825.67 NEW BUSINESS BUDGET $1,500 ($180 Postage 6 Secretarial) NATURE OF PROMOTION TOTAL AMT. PAID TOTAL FUNDS FROM PAID AND EXPENSE AMT. FROM TOWN AMT. TOWN COMMITTED PAID FUNDS COMMITTED COMMITTED THIS PEk. 1. REGIONAL ADV. A. Media B. Other 2. NATIONAL ADV. A. Media B. Other 3. ARTWORK, PHOTO., COMPOSITION, PREPARATION, ETC. 4. PUBLICATIONS A. Area Maps B. Directory C. Brochures D. Other 49.33 49.33 49.33 225.75 1,008.10 5. ADMINISTRATION A. Postage 9.30 B. Secretarial 53.50 C. Public Rel. 19.00 D. Other 225.75 1,008.10 9.30 53.50 225.75 TOTAL 1,364.98 1,345.98 275.08 TOTAL PAID 6 COMMITTED A 6 C 1,364.98 TOTAL PAID 6 COMMITTED FROM TOWN FUNDS B 6 D 1,543.98 BALANCE IN TOWN FUND 154.02 NON -SUMMER BUDGET NATURE OF PROMOTION TOTAL EXPENSE AMT. PAID $7,500 AMT. PAID TOTAL FUNDS FROM FROM TOWN AMT. TOWN FUNDS COMMITTED COMMITTED PAID AND COMMITTED THIS PER. 1. LOCAL ADV. A. E. P. Trail/ Gazette B. KKEP C. Other 2. REGIONAL ADV. A. Media B. Other 3. NATIONAL ADV. A. Media B. Other 35.00 750.51 2,807.03 42.00 4. ARTWORK, PHOTO., COMPOSITION, PREPARATION,ETC. 107.00 5. PUBLICATIONS A. Area Maps B. Directory 273.75 C. Brochures 3,299.00 D. Film E. Other 128.75 6. ADMINISTRATION A. Weather Service B. Public Relations C. Other 35.00 190.69 2,807.03 3,000.00 3,000.00 3,000.00 107.00 273.75 3,299.00 128.75 1,250.00 1,250.00 800.00 TOTAL 7,443.04 6,841.22 1,250.00 1,250.00 3,800.00 TOTAL PAID & COMMITTED A 6 C 8,693.04 TOTAL PAID 6 ^OMMITTED FROM TOWN FUNDS B 6 D 8,091.22 BALANCE IN TOWN FUND Fund Consumed March, 1972 April, 1972 May, 1972 June 6 July, 1972 Committed LIST OF EXPENSES Keith County News Trail/Gazette Everitt-Z ie ge l Stewart's Printing Pat Matuszak Ron Reiland Sonochrome Forest Myers Hirshfeld Press Ronald Reiland Karen Klineschuster Jim Dunham Skaggs Drugs Ronald Reiland Hirshfeld Press Forest Myers Western Justice Parade Ronald Reiland Sonochrome Winter Adv. Directory Brochures Directory Directory Travel Film Advertising Directory Trave 1 Brochures Western Justice Film Travel Brochures Advertising Advertising Travel Film 11. 76 274.10 75.00 238.50 34.89 31.00 1,000.00 2,000.00 1,924.00 93.90 150.00 50.00 63.00 32.00 2,625.75 282.12 429.08 256.17 50.00 3,500.00 FROM ..• • • • • • • . • • .ESTES PARK AREA CHAMBER OF COMMERCE TO . • • . • . . . • • • • •ADVERTISING COMMITTEE TOWN OF ESTES PARK, COLORADO REFERENCE. . • . • , • • . •ADVERTISING BUDGET, 1913 GENTLEMEN: We present the following material for your consideration. SECTION 1 . . . • . • • .INTRODUCTION SECTION II. • . • • . • .PROPOSAL SECTION III . • , • . .JUSTIFICATION SECTION IV. • . • • . . .ADVERTISING CONTRACT SECTION V • . • • • • , .BUDGET SECTION I INTRODUCTION: The Estes Park Area Chamber of Commerce is proud of its association with the Town of Estes Park. We have been deeply pleased with our existing relationship and sincerely strive for ever improving conditions in the future. Regardless, to properly relate the various opinions ex- pressed to us by our membership there are thoughts which should be expressed in the interests of accurately repre- senting these opinions to you. Our proposal will follow in Section II. The background material in this section should be considered when reviewing our advertising pro- posal for the coming fiscal year. A. There is a large segment of our membership which steadfastly supports drastically increased adver- tising expenditures by the Town of Estes Park. Basic arguments in validating this position vary. However, the primary reasons for their position are due to the fact that our basic economic structure is based solely on tourism. If Estes Park did not enjoy a prosperous tourist economy, our entire community would disintegrate. Virtually every business is dependent on tourism --either directly or indirectly. If our visitor related businesses were to page 2 - Introduction cont. fail, then everyone --from the attorneys to the barbers -- would also fail. Although a businessmen's income may come directly from our "permanent" residents if these permanent resident businessmen are unsuccessful, then the dentist, doctor and even the Town of Estes Park would suffer. Certainly the income of the town is directly dependent upon the tourist dollars spent. In addition to the income to the town from our "permanent" businessmen, a sizeable portion of the town's generated income comes from tourists. Without our visitors what would happen to the light and power department income? What would happen to the water department income? What would happen to the income generated through the sales tax --which is most assuredly in direct proportion to the purchases and expenditures of our visitors? It is obvious, through previous town participation and support, that the Town of Estes Park is aware of the fact that they have a vested interest in the success of our tourist related economy. However, it is the opinion of many of our members that the town should be spending far more for advertising efforts. As a result of increased advertising, the town would in effect be generating income for itself --as well as the entire community. page 3 - Introduction cont. While actual sales tax statistics are not yet available, we can safely say that this has not been a "boomer" summer. There are many businesses who have not enjoyed an increase in business for this year. There isn't any- one who can say we were filled to capacity and more and more persons are becoming aware of the vital need for continued and increased advertising. Estes Park is not the only vacation spot in the world and with so many other areas increasing their advertising expenditures we had better not fall into the trap of complacancy and realize that if we don't get out and fight for our share of the business we may soon realize that we are in the midst of our own little depression. Indeed, a depression of our own making. E. Additional funds, wisely utilized, can increase the year-round business needed to stabalize our economy. Advertising is not inexpensive. To advertise our community on a year-round basis means stratching our burdened budget until it is spread so thin that it may be ineffective. Yet a year-round economic structure will benefit everyone. The town can realize more income and better balanced service requirements. The businessman now open year-round will certainly benefit from increased "off season" income. The businessman not now open in the winter can still extend his season into early spring and late fall until he too can page 4 - Introduction cont. justify remaining open the year around. Even though he may now be closed in the winter, the property value appreciation of every business will increase due to the establishment of a year-round economy. C. Regardless of the general opinion --no matter how uninformed --that the town should increase its parti- cipation, we fully understand the many considerations that must be planned for by the Town of Estes Park. We know the many town obligations and commitments that must go on. While we would obviously not turn down any sizeable funds from the town for advertising, we would rather justify our position on one of our tempered idealism with reality. D. Our advertising approach this year has proven that well designed advertising does not have to solicit inquiries. We have found that, even though additional ad- vertising has been done, we can direct an ad so that it does not overburden our administrative support. We placed some $3,000.00 additional funds in ads in April and May and yet our postage from coded mail was not as large as last year. We therefore feel that additional advertising can be done without seriously jeopardizing our administrative budget. Professionally designed advertising, properly placed, can still benefit the community without directly encouraging page 5 - Introduction cont. written inquiries. There are times when it is desirable to solicit inquiries. An example would be when you want an interestindicated for a salesman's follow-up. However, our product is our area. The scenery and mountains. We can't take it to show a person. We can't possibly follow up an interest with a personal visit. We must design our advertising so that it is our sales approach in itself -- no inquiry is required to make the sale. We, therefore, feel that we can appreciably increase our advertising budget without jeopardizing our administrative support. Therefore, we -present the following proposal for your consideration in evaluating the town's participation in advertising for the fiscal year, 1973. SECTION II PROPOSAL: For the fiscal year 1972,.the advertising contract between the Town of Estes Park and the Estes Park Area Chamber of Commerce was for the amount of Y13,000 plus an additional $3,500 on a matching fund basis. This total of town support was $16,500. Based on the following, we would request the town's par- ticipation for the fiscal year 1973 to be $20,000 plus $2,500 on a matching fund basis. The Estes Park Area Chamber of Commerce proposes that this $22,500 be allo- cated for expenditure in the following manner: 1. $3,500 to be spent for production of the new motion picture being produced. This amount, committed by the board of directors this year but not due until January, 1973, is the balance remaining for the production of the film. The film, of which ten copies will be made, will be shown through film distributing companies; shown to clubs and organizations; used in the pursuit of convention business; and used locally to encourage persons already in the area to stay over longer and do the things seen in the picture. One thousand dollars has already been spent on production of the film which has a total cost of $4,500. 2. $11,000 to be spent for advertising designed to bring business to the community during the summer months. Expenditures would be for national or regional advertising page 2 - Proposal cont. in magazines, etc. (as outlined in this year's advertising contract) and would also be used for brochures, etc. (as also outlined in this year's contract.) 3. $5,000 to be spent for pursuit of convention and group business. Expenditures would be dsroutlin+edi.in last year's advertising contract. In addition we would request that any direct mail advertising expenses (including postage) and replies to group business inquiries would be covered by this agreement. I.e. - replies to inquiries by persons seeking vacation information would not be paid for by town advertising funds but any replies to potantial group business for seminars, sales meetings, etc. would be paid for by advertising funds coming from the town. We would request that travel expenses for mileage driven would be allowed in the amount of 10 per mile provided this amount did not exceed 20% of the $5,000. This mileage allowance would apply only to travel incurred specifically for pursuit of convention or group business. 4. $4,000 to be spent for advertising designed to bring business to the community during the "off season" months. Expenditures would be as outlined in this year's advertising contract. 5. The Estes Park Area Chamber of Commerce would also request your consideration in allowing postage costs to be allocated as a part of the above advertising expen- ditures so long as the postage in only used for answering page 3 - Proposal cont. those specific CODED advertisements paid for with these funds and so long as the amount does NOT exceed the following percentages: MOTION PICTURE ALLOCATION N/A SUMMER ADVERTISING 10% CONVENTION ADVERTISING 5% WINTER ADVERTISING 10% SECTION III JUSTIFICATION: MOTION PICTURE Although the fact that the Town of Estes Park virtually paid for the production of the previous motion picture produced in 1957, this is no justification as to why the town funds should be spent for the new film. However, the fact that the film is vital in telling the Estes Park story should warrant its being included as a part of the advertising budget. It will unquestionably be used for advertising the area and if the funds are taken from regular advertising allocations it will mean a diluted advertising effort for the year 1973. Due to the obvious and continued need for advertising in order to maintain and increase our tourist business we cannot afford to water down our advertising efforts. With this additional amount being allocated to new town funds we can maintain our ad- vertising attack and not let up. Judging by the business uplse of the area this would be a desirable undertaking - particularly when considering the general disappointment in this summer's business climate. SUMMER ADVERTISING This expenditure would be to bring vacationers to our area during the summer months. It does not mean that the monies are actually spent during the summer months. Next year Rocky Mountain National Park has consented to send our page 2 - Justification cont. directory to those persons inquiring about accommodations in the park. Previously, about 35,000 of our directories have been ordered with about 30,000 being sent to persons inquiring about our area. Generally speaking, about the same amount of advertising income is generated from this publication as the cost in producing 35,000 directories. However, with the additional 10,000 now requested by the National Park we will have to print additional copies next year. Yet it will mean no increase in advertising income and so can further decrease our overall advertising efforts if additional sums must be taken from direct advertising for payment of the additional 10,000 direc- tories. Even this year, in the midst of our advertising place- ment, costs of space went up in the newspapers. We got less mileage from our dollars than was originally antici- pated. Frankly, with rates expected to raise again we will automatically need to spend more money just to stand still. Also, the cost of brochures and printing is quickly rising. We can substantiate the fact that those states who have increased their advertising budgets (for national adver- tising at the state level) have been enjoying a good summer business this year. The fact that many states are in- creasing their state expenditures and the fact that this year Colorado has DECREASED its budget means that we must page 3 - Justification cont. advertise more if we are to survive. Tourism is becoming more and more competitive. We must look out the wind- shield and quit looking in the rear-view mirror. Down the road there is a lot of competition and business lost that can never be recovered. Taking into consideration the possible future restrictions on travel into the park, the new all-weather highway going west from Fort Collins and the great additional competitive pressure from other tourist areas - including many from within our own state we can no longer sit back and state that the mountains are here and people will always come to them. This summer has proven to everyone that we cannot rest on our previous successes. No person can say that we have had all the business we can handle. CONVENTION ADVERTISING Our preliminary group solicitation efforts last year resulted in over 3,000 person days of business for the area. Due to advance planning by most groups we antici- pate that this large market offers one of the greatest future growth areas for our economy. However, to do a good sales job requires both the manpower, sales tools and advertising to succeed. Person to person contact is very important when selling groups. Travel is not cheap but it is vital in obtaining group business. In addition to this we require a new "convention booklet" page 4 - Justification cont. and direct mail tools. Additional planned direct mailings mean more expenditures for postage and supplies. WINTER ADVERTISING Last winter's retail sales tax receipts clearly point up that this portion of our annual economy is rapidly growing. Our efforts last year are paying off. Regardless, this is virtually an untouched area and one in which we must advertise. According to Ski Magazine, cross country skiing is growing at an annual rate of over 40%. With the large amount of governmental land available in our area we had better get on the bandwagon. Vail alone spends more in pursuit of ski business than our entire annual advertising budget. The Town of Estes Park stands to gain a great deal if we can better establish a year-round economy. Certainly the same potential distribution of utilities exists in the winter as the summer and yet the town is not realizing the income potential in this season. Additional sales tax monies can be realized through the continued pursuit of winter business. If more of the existing service and sales tax capabilities were able to be utilized in the "off season" the town would certainly prosper financially. With the trend towards year-round school systems and shorter work weeks we had better balance our economy. We cannot page 5 - Justification 'cont. get caught with all our eggs in one basket. We must plan against the eventuality that our summer season may not always be so strong. CONCLUSION: The Estes Park Area Chamber of Commerce and the advertising committee feel that if this advertising budget is adhered to, the result would be increased revenue for the town and community and a growth in our population that is quality oriented. We urge your serious consideration in increasing the adver- tising funds available to the Chamber of Commerce for the purposes described herein. Due to the reasonably small size of our overall advertising funds we have concentrated on placing specific regional ads and have not entered into the realm of "image" or national advertising. In the event that the town can consider even further increasing the funds available to the Chamber it would be our intent to make a trial promotional effort in quality national magazines and develop a valid criteria for evaluating the worth of this type of advertising. It is anticipated that an additional sum of approximately $7,000 would be needed to obtain sufficient space to develop a valid judgement as to the effectiveness of this new national campaign. However, with- out the additional funds we will continue to pursue what we consider to be our most effective means of advertising - that of predominately placing ads in our market area newspapers. SECTION IV ADVERTISING CONTRACT: Due to our experiences with this year's budget planning we would request a contract similar to last years with one major exception. Due to the advertising expenses of the Chamber coming due prior to summer we would request the following accelerated advertising schedule: 1. Advertising funds available, as now, with the 6 annual installments. However, we would appreciate receiving the $3,500 for the movie treated as a separate amount to be received as soon as possible. 2. The 6 annual amounts, in addition to the movie fund would be: $4,875.00 payable in Feb. for Jan. and Feb. $4,875.00 payable in April for March and April $4,875.00 payable in June for May and June $1,625.00 payable in August for July and August $1,625.00 payable in Oct. for Sept. and Oct. $1,625.00 payable in Dec. for Nov. and Dec. In the event the town would entertain the thought of a national "image" advertising program, the additional funds should also be allocated sometime prior to summer. The Estes Park Area Chamber of Commerce sincerely thanks you for your thought and consideration. We appreciate your efforts and feel that through our mutual understanding the entire area will benefit. 1972 EXPENSES - 1973 ESTIMATE In the interests of simplicity, the following is a generalized budget of our major expenses this year and anticipated expenses next year. 1972 figures are year to date and in some cases will be higher by year end. Those "new business" expenses this year have been grouped in other categories where applicable. FILM 1972 ACTUAL $1,000.00 SUMMER EXPENSES Direct Adv. (incl. art and preparation) 6,151.40 Publications (incl. art and preparation) 5,398.97 Misc. 81.80 Committed 1,250.00 total 13,882.17 Postage (est.) 3,500.00 CONVENTION EXPENSES Direct Advertising Publications 1,002.86 Misc. (incl. travel) 489.43 Committed 1,250.00 total 2,742.29 Postage (est.) 150.00 ONO ONO MO WINTER EXPENSES Direct Advertising 3,737.54 Publications 3,701.50 total 7,439.04 Postage (est.) 1,000.00 TOTAL ALL EXPENSES 28,713.50 TOTAL EXPENSES LESS POSTAGE 24,062.50 YEAR TOTAL BUDGET 26,750.00 1973 ESTIMATE $3,500.00 7,000.00 6,000.00 4,000.00 2,000.00 1,750.00 1,250.00 250.00 3,500.00 2,500.00 1,250.00 33,000.00 27,500.00 27,500.00